Federated Co-operatives Limited (FCL), Saskatoon, Sask., reported that it has completed a C$5 million upgrade to its Brandon, Man., fertilizer terminal. The cooperative also confirmed that its joint venture with Blair’s Family of Companies, a family-owned retail business in Saskatchewan, began operations on July 31 after receiving regulatory approval from Canada’s Competition Bureau.
First announced in November 2020 (GM Dec. 4, 2020), the Brandon upgrade increased storage capacity at the site by 9,000 mt, or 30 percent, to a total of 36,500 mt. Construction began in late October last year, barely three years after the Brandon facility became operational (GM Sept. 22, 2017).
“We went from having four bays with 27,500 mt storage to seven bays with 36,500 mt storage,” Matt Conacher, Senior Manager Fertilizer for FCL, told Green Markets. “This expansion will help us better serve local co-ops as we can increase our product offerings while having more available inventory on hand. We move a lot of tonnes through Brandon and feel like this expansion was needed to help alleviate some of the spring supply chain pressures.”
The Brandon site is used to warehouse, blend, and distribute a complete suite of crop nutrition products for FCL locations and agricultural producers in Manitoba and eastern Saskatchewan. The terminal also offers warehouse storage for liquid micronutrients and nitrogen stabilizers.
The Brandon facility is one of three fertilizer terminals operated by FCL. The company in 2016 announced an investment of C$75 million to build both the Brandon facility and a second, 45,000 mt fertilizer terminal in Hanley, Sask. (GM July 29, 2016). FCL opened a third fertilizer terminal last fall at Grassy Lake, Alta., which cost C$42.8 million and has 34,400 mt of storage capacity (GM Oct. 9, 2020). With the Brandon expansion completed, FCL said the three fertilizer terminals now have a combined storage capacity of 115,900 mt.
The joint venture with Blair’s was first announced in February of this year (GM Feb. 5, p. 1). The Competition Bureau announced in early July that it would not challenge the deal, provided that certain actions were taken pursuant to a consent agreement filed with the Competition Tribunal. The transaction closed on July 31.
The joint venture acquired seven Blair’s ag retail locations in Saskatchewan, providing crop inputs, animal nutrition products, and agronomic services to farmers near Lanigan, Liberty, Lipton, McLean, Nokomis, Rosthern, and Watrous. As a condition of regulatory approval and in accordance with the consent agreement, the joint venture will sell its interest in the Lipton location and anhydrous ammonia assets in Lipton and Balcarres after closing.
“Both Co-op and Blair’s have such deep roots in our communities and we are very excited with the opportunity to continue serving our valued farm customers through this new joint venture partnership in the years ahead,” said Ron Healey, FCL’s Vice-President of Ag and Consumer Business. “Blair’s farm customers will still work with the same experienced and knowledgeable teams they have trusted for years and will now have access to industry-leading services and a broad portfolio, including high-quality products exclusively manufactured or distributed by Co-op.”
Blair’s staff will continue to manage the day-to-day operations of the retail locations under the Blair’s banner, with the Blair’s management team reporting to the joint venture’s board of directors. Eight Capital acted as financial advisors to Blair’s in connection with the joint venture and will act as financial advisor to the joint venture for the sale of the Lipton location.
“For over 73 years, our business has been committed to providing innovative solutions to advance the business of our farm customers,” said Kevin Blair, CEO of Blair’s Family of Companies. “We are excited to be working with FCL as part of the new joint venture as they share our core values and commitment to our customers, employees, and communities.”